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Volkswagen Group at a Glance VOLKSWAGEN GROUP
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The following presentations as well as remarks/comments and explanations in this context contain forward- looking statements on the business development of the Volkswagen Group. These statements are based on assumptions relating to the development of the economic, political and legal environment in individual countries, economic regions and markets, and in particular for the automotive industry, which we have made on the basis of the information available to us and which we consider to be realistic at the time of going to press. The estimates given entail a degree of risk, and actual developments may differ from those forecast. All figures are rounded, so minor discrepancies may arise from addition of these amounts. At the time of preparing these presentations, it is not yet possible to conclusively assess the specific effects of the lates t developments in the Russia -Ukraine conflict on the Volkswagen Group’s business, nor is it possible to predict with sufficient certainty to what extent further escalation of the Russia -Ukraine conflict will impact on the global economy and growth in the industry in fiscal year 2023. Any changes in significant parameters relating to our key sales markets, or any significant shifts in exchange rates, energy and other commodities or the supply with parts relevant to the Volkswagen Group will have a corresponding effect on the development of our business. In addition, there may also be departures from our expected business development if the assessments of the factors influencing sustainable value enhancement and of risks and opportunities presented develop in a way other than we are currently expecting, or if additional risks and opportunities or other factors emerge that affect the development of our business. We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded. This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities. 2 Disclaimer
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3 All service providerExtraordinary portfolio 9 car brands of 5 European countries Strong manufacturer up to 250,000 cars produced per week Global production footprint Global player more than 150 countries where vehicles are sold 678,000 employees in the whole Group Powerful truck business 4 truck brands under one roof managed by TRATON SE Forward looking strategy >50% BEV share target by 20303 on 3 BEV architectures (MEB, PPE and SSP)4 1. before special items I 2. ex diesel and M&A I 3. strategic target I 4. MEB: modular electric-drive toolkit, PPE: premium platform electric, SSP: scalable systems platform I 5. Total € 43bn incl. Porsche IPO special dividend of € 6.5bn (net); payout January 2023 Škoda Enyaq: Power consumption in kWh/100 km: combined 16.8; CO2-emissions in g/km: 0 (combined) | CUPRA Formentor VZ5 Fuel Consumption in l/100 m: combined 10.3 – 10.1; CO2-emissions in g/km: 232 – 230 (combined) Audi A6 Avant e-tron: Concept car| Bentley Continental GT: Fuel Consumption in l/100 m: combined 13.7 – 12.1; CO2-emissions in g/km: 311 – 275 (combined) Porsche Taycan GTS Sport Turismo: Power consumption in kWh/100 km: combined 24.1 – 21.0; CO2-emissions in g/km: 0 (combined) | Porsche 911 Targa 4S: Fuel Consumption in l/100 m: combined 11.1 – 10.4; CO2-emissions in g/km: 252 – 236 (combined) Only consumption and emission values according to WLTP and not according to NEDC are available Key Facts of Volkswagen Group Deliveries to Customers m vehicles 2021 2022 8.6 Sales Revenue € bn Return on Sales % Clean Net Cash Flow (Automotive)2 € bn Net Liquidity (Automotive) € bn 8.5 250.2 279.2 7.7 8.1 15.5 9.1 26.7 43.05 2020 9.1 222.9 4.3 10.1 26.8 2023 9.4 322.3 7.0 10.7 40.3 Financial Services & Mobility Solutions
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4 Ralf BrandstätterDr. Gernot Döllner Thomas Schmall-von Westerholt Dr. Oliver Blume Thomas SchäferHauke Stars Gunnar Kilian Dr. Arno Antlitz Dr. Manfred Döss China3Brand Group Progressive Technology CEO of Volkswagen AG and Porsche AG1 Brand Group CoreIT Human Resources and Truck & Bus COO and CFO2 Integrity and Legal Affairs since January 1, 2022 till 2026 since September 1, 2023 since January 1, 2021 till 2023 since September 1, 2022 till 2027 since July 1, 2022 till 2027 since February 1, 2022 till 2025 since April 13, 2018 till 2026 since September 1, 2022 till 2027 2 since February 1, 2022 till 2025 1. CEO of Porsche AG since October 1, 2015 I 2. CFO of Volkswagen AG since April 1, 2021 I 3. CEO of Volkswagen Passenger Cars since July 1, 2020 till December 31, 2021 The Group’s Board of Management
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5 1 Technologies at scale
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Volkswagen Group Strategy 6 Platforms fostering group-wide cooperation Volkswagen Group Mobility - One platform for all mobility needs Architecture - SSP as single future backbone Software - Platform scale & speed through smart partnerships Battery, Charging & Energy - Unified cell with tailored regional approach Core Progressive Sport Luxury Trucks
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Text SSP 2 BEV architectures One BEV architecture PPE MEB+ 2007 2019 SSP 4 ICE architecturesMLB MQB NSF MSB 3 “Pioneer” BEV architecturesJ1 e-tron MEB 2024/25 BEV competitiveness with MEB+ & PPE Future: SSP as single backbone Today: Complexity due to multiple platforms 7 Note: MEB: Modular Electric Drive Matrix, PPE: Premium Platform Electric, SSP: Scalable Systems Platform Clear path to BEV competitiveness & one architecture
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BEV margin Battery cost savingsLower R&D with platform synergies Scale & lower factory costs Ambition1: Closing the margin gap in 2026 ICE margin Declining demand for ICE Tax Disadvantages 1. Comparison of BEV and corresponding ICE model, parity always depending on specific set of factors (e.g. raw material pricefluctuation & production location) MQB substance & scale ICE complexity reduction Efficiencies from multi-brand factories Tightening Emissions Regulations / Euro 7 8 Tangible levers for margin parity on selected projects
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Note: MEB: Modular Electric Drive Matrix, PPE: Premium Platform Electric, SSP: Scalable Systems Platform 1. Minimum charging time 10-80% SoC (State of charge for MEB/PPE/MEB+), 5-80% for SSP depending on specific set of factors (e.g.battery size, temperature) | 2. Comparison of BEV and corresponding ICE model, parity always depending on specific set of factors (e.g. raw material price fluctuation & production location) Dimensions MEB PPE MEB+ SSP Charging time, min1 ~35 ~21 ~20 ~12 Engine power, kW 110-220 140-700 110-290 120-1,300 Main segments A-B B-D A0-B A0-D Margin parity2 Some Selective Selective Most ADAS Up to L2+ L2++ & more Up to L2++ Up to L4 9 Advancements along our path to one architecture
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Speed & differentiation Scale & standardization Significant module sharing for 40m units in all segments Volume scale of at least 4 brands in each segment Lead brands with flexibility to tailor to segment needs Efficient differentiation between brands within each segment Margin parity for most BEV models1 -30% Capex & R&D costs2 1. Depending on specific set of factors (e.g.raw material price fluctuation & production location) | 2. Compared to MEB Ambitions 10 SSP: Clear benefits
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Regional sourcing strategy Tailored mix of make & buy PowerCo: Competitive supplier Superior & flexible Unified Cell Vertical integration with partners 11 Key pillars of our battery strategy
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Cost reduction of up to 50%1 through strategic initiatives (e.g. dry coating) Adaptable to all leading chemistries Tailored to segments & architectures 1. LFP based chemistry as presented at battery strategy day in 11/2021 12 Unified cell: Powering up to 80% of all our BEVs in 2030
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20302025 PowerCo 3rd party supply 0 20 40 60 80 100 0,0 0,2 0,4 0,6 0,8 1,0 2030202520302025 13 Regional sourcing: Tailored strategies
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-30 % Capex per GWh vs. state-of-the-art 3 factories totalling ~200 GWh Optionality for stage-gated ramp-up 14 PowerCo: Competitive supplier for NAR & Europe
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Overall timeline driven by milestones Technology development as priority IPO as tangible option Closing Umicore JV 2023 2025 2026 2027 BIC1 chemistry Ambition: Stock market listing 2024 Ready to open capital structure SOP Ontario SOP Valencia SOP Salzgitter 1. Best-in-class / high performance battery cell 15 PowerCo: Many opportunities ahead
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Strengths Challenges Unique position of Volkswagen Group due to scale Attractiveness of software features Regional partnerships (e.g. Horizon Robotics, Bosch) In-time delivery at competitive costs Growing technology & software talent base Alignment of requirements across Volkswagen Group 16 Software: Status quo assessment
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CARIAD China partnerships to contribute key features, building on one central & zonal E/E architecture Central & Zonal E/E architecture Smart Cockpit ZONALS ZONALS CENTRAL DOMAIN CONTROLLER UX / UI ADAS
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Global Apps Q4/2019 ADAS Q2/2023 ADAS Q1/2022 Semiconductors Q2/2022 China ADAS Q4/2022 Connectivity & Infotainment Q2/2023 18 Partners: Global & regional partnerships
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19 2 Brands
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Today’s strengths Today’s challenges Market leading position in China & Europe Large fleet & global customer base Strong brand portfolio High cost base & asset intensity BEV & SDV1 competitiveness Brand differentiation 20 1. Software-defined vehicles Brand Group Core: Status quo assessment
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New governance with clear responsibility Focus on costs & capital efficiency Synergies, innovation & BEV share Clear differentiation across brands 21 Brand Group Core: Strategic priorities
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3.6% Return on Sales 2022 Specific goals aimed at cost & complexity reduction ~€10bn sustainable improvement To be developed with employee repre- sentatives involved 6.5% Return on Sales 2026 Cost initiatives (material, fixed, production, sales, R&D costs) Structural synergies (overhead, distribution, new business opportunities) Product positioning (mix, content, pricing) 22 1. Further information and details in conference call in autumn 2023 VW brand: ACCELERATE FORWARD I Road to 6.5 1
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Strong performance track record Leading position in target markets Double-digit RoS & high cash conversion Realize full potential of the Audi brand Re-balance regional footprint Execute successful BEV & SDV1 transformation Today’s strengths Today’s challenges 23 1. Software defined vehicles Brand Group Progressive: Status quo assessment
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Capture high-margin market potential Successful execution of product roadmap Tailored strategies for North America & China Brand-specific strategies for BEV & SDV leadership 24 Brand Group Progressive: Strategic priorities
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Freedom of self-expression Porsche family as community Iconic, most personal product Exciting experiences Responsible corporate citizen It‘s not what you buy, it‘s what you buy into. 25 Brand Group Sport Luxury
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Luxury 1. Ratio Automotive Revenue to Deliveries for Porsche, for other OEMs ratio of automotive revenue to deliveries (as such terms are defined in the respective OEM annual reports. Automotive revenue to the extent possible. Such terms may not be entirely comparable due to differences in accounting policies) | 2. Data 2021 | 3. Aston Martin, Bentley, Ferrari, Lamborghini, McLaren (annual reports). Bugatti and Rolls-Royce not depicted | 4. Audi, BMW, Mercedes-Benz, Tesla, Volvo Cars (annual reports) 100 Deliveries, in k cars21,000 300 300 10 Premium4 Niche luxury3 50 Automotive revenue per car1, in € k2 26 Unique position in luxury automotive segment
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Portfolio of strong brands Coverage of largest regional profit pools State-of-the-art products & technology Realize potential of brand collaboration Transition to sustainable transport Improve brand margins & cash flows Today’s strengths Today’s challenges 27 Brand Group Trucks: Status quo assessment
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Leverage TRATON Modular System Sustainable BEV transformation Profitable growth & new business models Focus on performance & capital allocation 28 Brand Group Trucks: Strategic priorities
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29 3 Regions
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Resilient structure of Volkswagen Group in China VOLKSWAGEN GROUP CHINA Volkswagen (China) Investment Co. Shareholdings Joint Ventures Fully cons. entities1 Imports to China Strong local infra- structure in place ~90k employees on the ground in China Longstanding local partner network Incl. VW Anhui (JAC-VW), VCTC & component subsidiaries 1. Includes Volkswagen (China) Investment Company (VCIC), Volkswagen (Anhui) Automotive Company Limited, Volkswagen Group (China) Technology Company (VCTC), Volkswagen Group China’s Digital Sales and Services Company (DSSO), Volkswagen Automatic Transmission (Dalian) (ATD), Volkswagen Automatic Transmission (Tianjin) (ATJ), Volkswagen Group Import Company (VGIC). (incl. NEV Co)
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New approach implementing ‘in China, for China’ Leveraging ICE- strength to master the transformation BEV/ICV push through smart partnerships; target cost parity to local leaders2 by 2026 Strategic Priorities for China 1. Concept version of a world model, China-specific model will be presented later. | 2. In A main segment based on China Main Platform Audi A6 e-tron concept1
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Strong shift of profit pools to BEV segments – but ICE profit pools will remain relevant and attractive for our brands A B C, D 2024 2030 2024 2030 2024 2030 Attractive profit pools Indication of Non-BEV profit pool Indication of BEV profit pool Indication of BEV loss pool
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Vehicle deliveries Market share (total) Operating profit (prop.) NEV penetration1 Key Performance Indicator Mid-term Ambition ~14% ~20% >€ 2.0bn Last Reported 14% 3.2m 6% € 2.6bn ~15% ~50% Strategic Ambition ~€ 3.0bn incl. Audi NEV Co. and VW Anhui2 ~4.0m 1. NEV includes BEV & PHEV as % of vehicle deliveries | 2. Including Audi FAW Nev Co. contribution, Volkswagen (Anhui) Automotive Company Limited fully consolidated Strategic ambition for Volkswagen Group China
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Sustain #1 in home market Digitize dealer network Align invest with profit pool Adjust production capacity 34 Strategic priorities for Europe
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Tailored product portfolio Localization of value chain New plant in South Carolina New regional governance Chattanooga South Carolina Ontario (Battery) Mexico Production plant Local hub Seattle (Cloud Computing) Silicon Valley (CARIAD) Herndon (NAR HQ) 35 Strategic Projects for North America
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36 4 Financials
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37 1. Chinese joint ventures SVW and FAW-VW are accounted at equity I 2. Ex Diesel and M&A I 3. Total Net Liquidity of € 43bn incl. Porsche IPO, special dividend of € 6.5bn (net), payout in January 2023 Key Figures Volkswagen Group 1 Group Financial Performance and Targets Volume Data (thousands) 2019 2020 2021 20221 2023 Chg. Yoy in % Outlook 2024 Mid-term Target 2027 Mid-term Target 2030 Total Deliveries 10,975 9,305 8,882 8,263 9,240 +11.8 BEV Deliveries in % of Total Deliveries 2.5% 5.1% 6.9% 8.3% +1.4ppt. Vehicle sales (units) 10,956 9,157 8,576 8,481 9,362 +10.4 Production (units) 10,823 8,900 8,283 8,717 9,309 +6.8 Employees (thousands)) 671 663 673 676 684 +1.2 Financial Data (in € million) Sales Revenue 252,632 222,884 250,200 279,050 322,284 +15.5 Up to 5% growth +5-7% CAGR from 2022 In line with industry Operating Result (before Special Items) 19,926 10,607 20,026 22,509 22,576 +0.3 Operating Return on Sales (Margin) 7.6% 4.8% 8.0% 8.1% 7.0% -1.1ppt. 7.0 to 7.5% 8.0 to 10.0% 9.0 to 11.0% Operating Result (after special items) 16,960 9,675 19,275 22,109 22,576 +2.1 Earnings before tax 18,356 11,667 20,126 22,070 23,194 +5.1 Earnings after tax 14,029 8,824 15,428 15,852 17,928 +13.1 Automotive Division3 Net cash flow 10,835 6,357 8,610 4,807 10,698 >100 €4.5bn to €6.5bn Clean Net Cash Flow 2 13,500 10,045 15,492 9,149 13,523 +47.9 Automotive CCR~60% Automotive CCR>60% Automotive Net Liquidity 21,276 26,796 26,685 43,0153 40,289 -6.3 €39 to €41bn
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Group revenue (in % p.a. – CAGR from anchor year) Group Operating Profit1 Group Return on Sales1 Automotive Investment ratio2,5 Automotive Net cash flow5 Guidance 2024 €322-338bn 7.5-8.5% ~14.5% ~35% €6-8bn Last disclosure 2023 €322.3bn €22.5bn 7.0% 13.5% 57% €10.7bn 1. Before special items | 2. Capex & R&D combined for Automotive Division as % of Automotive revenue I 3. Reported Net Cash Flow divided by Operating Result after special items of the Automotive Division | 4. Calculated against mid-point of Guidance | 5. Automotive Division includes the Passenger car & commercial vehicles (incl. Power Engineering) business Mid-term 2027 5-7% 8-10% <11% ~60% Strategic Target 2030 In-line with industry 9-11% ~9% >60%Automotive Cash Conversion Rate3,4,5 38 Volkswagen Group financial targets
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Group Return on Sales 1 0 5 10 15 2022A 2023E Mid-Term Strategic Target 29% 9-11%8.1% 7.5-8.5% 8-10% ~35% ~60% >60% ~9% <11% ~14.5% 13.7% Automotive Investment ratio2,4 Cash Conversion Rate3,4 1. Before special items | 2. Capex & R&D combined for Automotive Division as % of Automotive revenue I 3. Reported Net Cash Flow divided by Operating Result after special items of the Automotive Division | 4. Automotive Division includes the Passenger car & commercial vehicles business Brand specific margin targets Focused investment strategy Strict working cap. management Group RoS expansion 39 Tangible levers to improve cash flow generation
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Mid- term Strategic Target Mid- term Strategic Target Mid- term Strategic Target Mid- term Strategic Target 1. Not the same time horizon as for the Group, because separate listed entities have their own capital market guidance in place | 2. Before special items | 3. Reported Net Cash Flow divided by Operating Result after special items of the Automotive Division | 4. Based on Porsche Group operating profit (incl. Financial Services segment) | 5. Based on Porsche Automotive only, corresponds to Porsche Net Cash Flow Margin ambition of 12.5-14% as Mid-term target | 6. Based on TRATON Operations only, corresponds to TRATON Group strategic target of 9% by 2024 | 7. Based on TRATON Operations Net Cash Flow and operating profit | 8. China evaluated differently between Brand groups | 9. Including PHEV and including deliveries in China included in the consolidatedfigures Core Progressive Sport Luxury1 Trucks1 8% 12% 14% 19%4 20%4 9%6Return on Sales2 60% 75% 60%5 70%7Cash Conversion Rate3 35% 50% 40% 75% 50%9 80%9BEV Share8 [%] 40 Supported by targets on individual brand group level
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41 Focused financial steering of the transformation Safeguarding and strengthening our financial foundation [in % of gross cashflow1] 31% 21% 22% 21% 5% Research & Development (Cash) Capex Shareholder Return (regular and special dividend²) Financial Robustness (esp. increase in Net Liquidity and working capital) M&A 1. Note: Gross Cashflow of € 33.2bn + €9.2bn (R&D Cash € 18.9bn - capitalized R&D of € 9.8bn) + Porsche IPO Proceeds of € 19.1bn (net) I 2. As resolvedat extraordinary AGM Dec 16 2022, payout of special dividend in January 2023 (net) Balanced Capital Allocation - Automotive Division FY2022
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42 Strong commitment to attractive shareholder returns 4.86 4.86 4.86 7.56 8.76 9.06 20% 29% 25% 29% 0 1 2 3 4 5 6 7 8 9 10 11 12 0 2018 18% 2019 2020 2021 20221 28% Proposal 20232 Dividends paid for period 2021-2023 totaling € 22bn up from € 18bn for 2011-2020 period Committed to strategic target ≥30% payout ratio 1. For 2022 € 8.76 plus € 19.06 special dividend 2. Subject to approval by Annual Shareholder Meeting on May 29, 2024 ∑ ∑ Regular dividend per preferred share [€] Payout ratio [as % of Group net income attributable to Volkswagen AG shareholders]
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Balance Sheet Automotive Division Note: Previous year adjusted (IFRS 17) | 1. Automotive Division only I 2.LTM means last twelve months | 3. As reported in the cash flow statement (Automotive Division) 31 December 20221 31 December 2023 31 December 2021 Net liquidity1, 3 [€ bn] Goodwill1 [€ bn] EBITDA1 [€ bn, LTM²] 27 26 32 40 26 37 43 26 37 109 40% 136 45% 139 46% 43 41 29 122 138 131 0 50 100 150 200 250 300 350 109 (40%) 136 (45%) 27 146 (48%) 272 301 306 Solid Financial Foundation of Automotive Division Resilience further enhanced [€ bn / in %] Provisions for pensions Equity (and equity ratio) Other liabilities
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1. Before special items | 2. Cash Conversion Ratio, calculated as reported Net Cash Flow divided by Operating Result after special items | 3. Underlying performance excluding € 1.4bn negative effects from fair value of derivatives outside hedge accounting. Delta to previous year figures in brackets. Core Sport Luxury 137.8 (+21%) 37.3 (+8%)Sales Revenue [€ bn] Overview FY 2023 Brand Groups Group results driven by strong performance across all Brand Groups Operating Result1 [€ bn] Operating Margin [%] Net Cash Flow | CCR2 [€ bn, %] 7.3 (+80%) 6.9 (+8%) 5.3 (+1.7ppts) 18.6 (flat) 5.6 | 77% 4.0 | 57% Progressive3 69.9 (+13%) 6.3 (-18%) 7.7 underlying (+17%) 9.0 (-3.3ppts) 11.0 underlying (+0.4ppts) 4.7 | 75% 4.7 | 62% underlying 44 ID.5 Pro: Power consumption combined: 15.9 - 14.6 kWh/100km (WLTP), CO2 emissions combined: 0g/km, CO2 efficiency class: A+++ Volkswagen ID. Buzz: Power consumption combined: 18.9 kWh/100km (WLTP), CO2 emissions combined: 0g/km, CO2 efficiency class: A+++ Skoda Enyaq: Power consumption combined: 13.6 kWh/100km (WLTP), CO2 emissions combined: 0g/km, CO2 efficiency class: A+++ Cupra Born: Power consumption combined: 17.6 kWh/100km (WLTP), CO2 emissions combined: 0g/km, CO2 efficiency class: A+++ Bentley Bentayga Speed: combined 14.7 l/100 km; CO2-emissions in g/km: 335 (combined) Only consumption and emission values according to WLTP and not according to NEFZ are available for the vehicle Lamborghini Urus S: combined 14.1 l/100km; CO2-emissions in g/km: 320 (combined) Only consumption and emission values according to WLTP and not according to NEFZ are available for the vehicle Porsche Taycan GTS Sport Turismo: Power consumption in kWh/100 km: combined 24.1 – 21.0; CO2-emissions in g/km: 0 (combined) Only consumption and emission values according to WLTP and not according to NEDC are available for the vehicle Audi A6 Avant e-tron: Concept car
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Overview FY 2023 Technology Platforms Continued investment in transformation BatterySoftware Delta to previous year figures in brackets. 45 - (-)1.1 (+35%) -0.4 (+245%)-2.4 (+16%) - (-) - (-) -0.8 (-14%)-3.0 (+7%) -4.0 underlying Sales Revenue [€ bn] Operating Result1 [€ bn] Net Cash Flow [€ bn] Operating Margin [%]
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1. TRATON Operations excluding Financial Services. Delta to previous year figures in brackets. Vehicle sales increased by 11% due to improved supply chains and continued high customer demand Revenue growth driven by higher volume, positive market/product mix, better unit price realization and growth in vehicle services Net Cash Flow reflecting improved operating performance 46 Brand Group Trucks – TRATON 1 Commercial Vehicles 45.7 (+16%) 3.7 (+135%) 8.1 (+4.1ppts) 2.7 (+3.5bn) Sales Revenue [€ bn] Operating Result1 [€ bn] Net Cash Flow [€ bn] Operating Margin [%]
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Note: Previous year adjusted (IFRS 17) I 1. Volkswagen Financial Services Division (including Scania FS and Porsche Holding) I 2. Calculated on basis of normalized 8% equity ratio Contract volume on previous year level Stable credit loss ratio Normalization of used car prices and operating result 47 Volkswagen Group Mobility Financial Services DivisionMobility 22,275 (+1%) 3.8 (-33%) 0.3 (flat) 12.6 (-12.4ppts) Contracts [‘000 units] Operating Result1 [€ bn] Return on Equity [%] Credit Loss Ratio [%]
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Key Takeaways VW ID.6 CROZZ: Vehicle sold outside Germany Audi Q4 e-tron: Power consumption combined: 18.3 - 15.2 kWh/100 km (WLTP), CO2 emissions combined: 0g/km, CO2 efficiency class: A+++ ICE market leadership strengthened, BEV sales momentum accelerating Operating results holding up well in challenging competitive environment Proportionate operating result of € 1.5 to 2bn expected for FY 2024 [€ m] Q1 Q2 Q3 Q4 48 661 824 625 611 578 527 690 1,156 727 1,064 722 741 2021 2022 2023 2024e Q2 Q3 Q4 ∑ 3,026 ∑ 3,280 ∑ 2,621 China Joint Ventures: Proportionate Operating Result Strong finish in a very competitive environment
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49 5 Steering Model
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Legacy paradigm New steering model “Value over volume” Capital efficiency & disciplined investments Focused approach to equity investments Clear focus on profitability, fixed costs & cash flow Based on Integrity & corporate values Aligned management incentivi- zation 50 Fostering entrepreneurship & faster decision-making
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1. Before special items | 2. for the Automotive Division | 3. Capex & R&D combined for Automotive Division as % of Automotive revenue I 4. Reported Net Cash Flow divided by OperatingResult after special items of the Automotive Division Principles Core KPI-Set Value over volume Profitability focus & cost discipline Cash flow focus Capital efficiency Sales revenue growth (in % p.a.) Return on Sales1 (in %) Operating result1 (in €bn) Net cash flow2 (in €bn) Cash Conversion Rate4 (in %) Investment ratio3 (in %) ROI2 (in %) 51 New Core KPI-Set to unleash entrepreneurial spirit
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7.3% 3.6% 10.5% 18.0% 4.0% Auto Core Progressive3 Sport Luxury4 ~7% ~12% >20%3 ~8% 64% ~55%30% ~55% 60% >60%3 n/a ~70%29% Benchmark as minimum ambition Group-wide performance programs Functional & structural dimension 1. Before special items | 2. Reported Net Cash Flow divided by Operating Result after special items of the Automotive Division (for peers where possible) | 3. Excludes ~€1.1bn of fair value effects | 4. Based on Porsche Group operating profit (incl. Financial Services segment)| 5. Mid-term Target for Porsche AG; CCR Based on Porsche Automotive only, corresponds to Porsche Net Cash Flow Margin ambition of 12.5-14% as Mid-term target; CCR is no key KPI for Porsche AG; the respective values shown are derived by Volkswagen AG Return on Sales1 & Cash Conversion Rate2 (FY2022) VW Peers CCR2 Mid-term Target5 Trucks 8.1% Group RoS % 52 Steering towards benchmark profitability & CCR
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19.5% 18.2% 17.2% Group overhead cost1 (in €bn) as % of Automotive revenue Ambition: Further reduction of ratio Positive contribution of existing programs Ongoing assessment of further potential Group-wide steering to ensure target delivery 1. Excluding R&D and capex 41 38 40 0 20 40 2019 2021 2022 Mid-Term Long-Term -9% Group overhead cost1 (in €bn) 53 Prudent management of overhead costs on Group level
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54 6 Sustainability & Governance
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55 IMPROVE ESG Performance Diversity Decarbonization Integrity Supply Chain & Human Rights People in the Transformation Circular Economy Orientation Reputation Value-Driver Transformation Current ESG focus area
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56 5 ENTWURF NICHT ZUR VERTEILUNG GEEIGNET UND NUR ILLUSTRATIV! Impact-driven ambition towards sustainable mobility Clear Group framework with four dimensions TOP KPI set to enhance sustainability profile Position brands in their specific environment NATURE OUR PEOPLE SOCIETY BUSINESS
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TOP KPIs for focused business steering Reduction of CO2eq Inventory (e.g., DKI) Share of Circular Materials Proportion of diversity in management Sustainability Performance of supplier in S-Rating Revenues from sustainable business models Share of Green Bonds Lost Time Injury Frequency Rate Social impact by donations and projects Biodiversity-Index Ø qualification hours per employee Global Reputation KPI Share of BEV TOP KPIs SustainabilityDimensions Sustainable Development Goals Business Driver Employer Attractiveness Social License to Operate Buying Behavior Conditions for Refinancing 1 2 3 4 5 6 7 8 9 10 11 12 57
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58 Volkswagen Group Decarbonization Path until 2050 2 How we act Science Based Targets initiative approved: • DCI to be reduced by 30% compared to 2018 • Reduction measures credited only • Ambition level for scope 1-2 is aligned with a 1.5°c decarbonization pathway Group Decarbonization target Offset Avoid Reduce DCI (t CO2e/veh.) Avoid & Reduce 2050 CO2e-Footprint Volkswagen 20302018 Baseline removecompensate Net carbon neutral: The Volkswagen Group and its products to be net carbon neutral Group decarbonization program 1 1. Emission reduction targets are set on a life cycle basis & measured by DKI –net carbon neutrality to be reached by 2050 2. Scope: Passenger Cars and Light Duty Vehicles
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59 Probability and severity of human-rights and environmental risks low high low high MEASURESRISK ANALYSIS All suppliers medium/ high risk suppliers high-risk suppliers + n tier Analysis Raw Materials Due Diligence System medium low high Code of Conduct Grievance mechanism Sustainability Rating* Severity * medium medium probability Country Risk Filter** Severityfor affected peopleand environments * The S-ratingis set by the Volkswagen's Sustainability Rating team. Everysupplierfillsa Self- Assessment Questionnaire(SAQ). It is processed by externalservice providerNQC Ltd. Dependingon the scoreand location of the supplier,an on-site checkmight also takeplace.The supplieris then graded A, B or C. A C-rating means thatthe supplierdoes not meet requirementsfor compliancewith sustainabilitystandardsand is not eligiblefor contractawarding.More informationabout the S-rating can be found in the 2022 Sustainability Report(page 108). * Both the countryof the HQ and the countryof operationsset the filter Human Rights Focus System RISK ASSESSMENT BASED ON THE NATURE OF THE BUSINESS ACTIVITIES INDIVIDUAL SUPPLIER RISK STANDARD MEASURES DEEP DIVE RISK ANALYSIS MEASURES Deep Dive Measures Acros s all tiers Assess- ment Miti- gation Impact evaluation Acros s all tiers Media Screening Supplier Training Prevent and minimize human right and environmental risks along the supply chains (ReSC System)
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60 We want to stay in regular contact and exchange with you – our investors – on further developments in the field of sustainable and green debt instruments. We appreciate the dialogue with you and have the clear ambition to match or exceed your expectations. We target to increase the use of Green Debt Instruments in the coming years significantly. All our future Green Bond transactions will (re-) finance our EU taxonomy aligned capital expenditures. We believe that Green Debt Instruments are effective tools to channel investments to projects that demonstrate climate benefits and thereby contribute to the achievement of the Paris Climate Agreement and the United Nations’ Sustainable Development Goals (“UN SDGs”). Sustainable Financing as part of our DNA
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61 Product strategy affects needed skills and quantity of work Labour costs as massive impact factor Workforce expects side by side process of growth, re-location and dismantling Restructuring programs Roadmap: Digitale Transformation New business fields . Effective management of wages in the transformation essential MaaS & TaaS ICE BEV Software driven products ILLUSTRATIVE ID.3 Pro Performance: Power consumption in kWh/100 km: combined 16.3 - 15.2; CO2-emissions in g/km: 0 (combined) Golf eHybrid: Fuel consumption in l/100 km: combined 1.6-1.4; power consumption in kWh/100 km: combined 10.8-10.1; CO₂-emissions in g/km: 36-33 (combined) Volkswagen ID.7/AERO: Vehicles is a near-production concept carOnly consumption and emission values according to WLTP and not according to NEDC are available for the vehicles Workforce transformation
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62 Shareholders’ Meeting Shareholder’s exercise their rights of participation and control Management Board Currently 9 members Chairman: Dr. Oliver Blume Supervisory Board 20 members 10 shareholder representatives 10 employee representatives Chairman: Hans Dieter Pötsch The Supervisory Board is responsible for monitoring the Management and approving important corporate decisions. Moreover, it appoints the Members of the Board of Management and conforms to the German Co- determination Act. The Management Board is responsible for managing the company in accordance with the applicable law, the Articles of Incorporation, and the By-Laws of the Supervisory and Management Boards, while taking into account the resolutions of the Shareholders’ Meeting. The work of the Management Board of Volkswagen AG is supported by the boards of the brands and regions as well as by the other group business units and holdings. Elects shareholder representatives Ratifies Reports Ratifies Appoints, Monitors and Advises Reports Executive Committee Mediation1 Committee Nomination Committee Audit Committee 1. in accordance with Article 27, Section 3 of the German Co-determination Act (MitbestG) Volkswagen Group Governance: Two-Tier Board System
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63 Functionality of the Annual Bonus Key facts • Basic continuation of the previous system (introduced in 2017) • Starting with 2021 financial year, ESG multiplier is added as new dimension • Defines a balance between financial key performance indicators and ESG targets • Performance measures reflect Volkswagen’s NEW AUTO strategy and transformation process Target value Payout (Cap: 200% of the target value) Governance (G) Factor Compliance / Integrity ESG-Performance Target achievement Social (S) Opinion Index / Diversity Index Environment (E) Decarbonization Index Return on Sales (ROS)Operating Result 1/21/2 1/21/2 ESG Performance ESG: Integral Part of bonus of Management Board since 2021
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LTI focusses on shareholder value STI measured against brand & brand group performance Short-term incentive (STI) Long-term incentive (LTI) STI focusses on cash flow & profitability targets LTI measured against group performance ESG targets as important multipliers in STI (indirectly contained via LTI) Consistency from the bottom to the top 64 Planned changes to variable management compensation
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1Ambition 2040 (world excl. China) for vehicle projects with SOP in 2040 and beyond 2absolute reduction target 3intensity target measured per vehicle km 4based on assumptions and information from markets EU+3, US, CN; value may be subject to change with base year recalculation process [see Group Sustainability Report 2023, p. 64] 5point of reference: 11.01.2024 65 Overview about targets, TOP KPIs and indicators No. Dimension Target TOP KPI Year Quanti. Disclosed E = Explicit I = Implicit N = No Quanti. Performance (FY2023) Reference Further Info 01 Nature The Volkswagen Group wants to become a net-carbon- neutral company. Reduction of CO2eq Inventory Scope 1+2 2030 -50% E -33.7%2 2018 Carbon Neutrality in 2040 (-90%) Scope 3 Cat.11 2030 -30% -12%3,4 Carbon Neutrality in 2050 (-90%) 02 The Volkswagen Group is working to continuously reduce our demand of primary resources. Share of Circular Materials 2040 40% 1 N on track body weight Product example: e.g. ID. Buzz (25%) (see sustainability brochures) 03 The Volkswagen Group supports biodiversity. Biodiversity-Index KPI in development 04 Our People The Volkswagen Group fosters a diverse, inclusive, and holistic non-discriminatory culture. Proportion of diversity in management Women 2025 20.2% E 19.2% Internation- alization 2025 25% 25.6% 05 The Volkswagen Group wants to be a unique employer leading teams to success. Ø Qualification hours per employee 2030 30h E 22.1h/ employee Average: 2015 to 2019 The baseline value is 22.3 hours and is the average for the years 2015 to 2019. 06 The Volkswagen Group stands for excellent health and safety at work. Lost Time Injury Frequency Rate 2040 < 1 E 3.6 Value per 1 million hours worked 07 Society The Volkswagen Group shapes responsible and sustainable supply chains. Sustainability Performance of supplier in S-Rating 2040 > 95% E 79% Revenue percentage of direct suppliers with a positive S rating in total procurement volume 08 The Volkswagen Group is a reliable partner. Global Reputation KPI KPI in development 09 The Volkswagen Group increases the positive social impact of its actions. Social impact by donations and projects KPI in development 10 Business The Volkswagen Group identifies and promotes sustainability-related business areas. Revenues from sustainable business models KPI in development 11 Share of BEV 2030 50% E 8.3% Brand- and regional specific targets 12 The Volkswagen Group strengthens and intensifies sustainable financing. Share of Green Bonds 2030 2040 30% 50% I 13.3% 5 Excluding Porsche AG & TRATON SE
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66 www.volkswagenag.com > Investor Relations > Corporate Governance > ESG Controversies https://www.volkswagen- group.com/de/publikationen/weitere/raw- materials-report-2022-2461 “The Green Finance Framework consistently links our corporate objective of carbon neutrality in 2050 with our financing strategy.” Green Finance Report www.volkswagenag.com > investor relations > fixed income > green finance * www.volkswagenag.com > sustainability > reporting ESG relevant reports & sources of information
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67 7 Financing / Debt
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68 A “Control and Profit & Loss Transfer Agreement” between VWAG and the German subsidiaries is in place. *Parent company cannot guarantee act as Guarantor for itself Issuing Entities Volkswagen Group Mobility Volkswagen Financial Services AG Volkswagen Bank GmbH Volkswagen Financial Services N.V. Volkswagen Financial Services Overseas AG Volkswagen Financial Services Japan Ltd. Volkswagen Financial Services Australia Pty Ltd. Volkswagen Leasing S.A. de C.V., Mexico Volkswagen Bank S.A., Mexico Issuing Entities Scania AB Scania CV AB Issuing Entities Volkswagen AG Volkswagen Aktiengesellschaft* Volkswagen International Finance N.V. Volkswagen Group of America Finance, LLC Volkswagen Credit Canada Inc. / Crédit VW Canada, Inc Issuing Entities TRATON SE TRATON SE* TRATON Finance Luxembourg S.A. TRATON Treasury AB guaranteed not guaranteed guaranteed not guaranteed guaranteed not guaranteed not guaranteed guaranteed Overview of financing entities of the Volkswagen Group guaranteed
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69 Funding Strategy • Financing of industrial development of the Group within the Automotive Division focusing on Passenger Car Business Area as well as Group financing for general corporate purposes • Leverage the multiple funding entities to streamline the issuance process across different currencies to better target the various members of the investor community • Aiming to minimize currency and interest rate risks as much as possible with the use of derivatives • Committing to hybrid capital to support the Group’s credit metrices whilst avoiding dilution of existing shareholders and optimising the cost of capital Funding Strategy • Financial management across TRATON, Scania and Navistar to finance the industrial development and the leasing services of TRATON Group • Optimization of financing costs with operations business financed from operating cash flow whereas other capital spending projects such as acquisitions, financed by a balanced mixture of equity and debt • Limit of market price risks as well as default risk of financial counterparties • Pursuing a prudent financial policy with a long-term commitment to an implied solid investment-grade credit rating TRATON SE (Guarantor) TRATON SE (Issuer) TRATON Finance Luxembourg S.A. (Issuer) TRATON Treasury AB (Issuer) Funding Strategy • Funding of leasing and car financing offerings of the Group • A continuously increasing share of the refinancing schemes via the capital markets via well-diversified financing instruments • Utilising means outside the company rating, e.g. customer deposits • Finding and tapping new investors • Use of capital market derivatives Automotive Division Financial Services Division Passenger Cars Business Area Commercial Vehicle Business Area Volkswagen Financial Services Financing Entities Volkswagen AG Financing Entities TRATON SE Scanie AB (Guarantor) Scania CB AB (Issuer) Financing Entities Scania AB Volkswagen Financial Services AG (Guarantor) Volkswagen Financial Services AG (Issuer) Volkswagen Leasing GmbH (Issuer) Volkswagen Financial Services N.V. (Issuer) Volkswagen Financial Services Japan Ltd. (Issuer) Volkswagen Financial Services Australia Pty Ltd. (Issuer Financing Entities Volkswagen FS Volkswagen Bank GmbH (Issuer) Financing Entities Volkswagen Bank Entity providing an unconditional and irrevocable guarantee Volkswagen Aktiengesellschaft (Guarantor) Volkswagen Aktiengesellschaft (Issuer) Volkswagen International Finance NV (Issuer) Volkswagen Group of America Finance, LLP (Issuer) Volkswagen Credit Canada Inc / Crédit VW Canada, Inc. (Issuer) Financing entities across the globe serving different purposes
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Automotive net liquidity (in €bn1 / as % of Group revenue) 1. Rounded year end values | 2. Total Net Liquidity of €43bn including €16.1bn Porsche IPO proceeds of which Porsche IPO special dividend of €6.5bn (net); payout in January 2023 Strong resilience Stable credit rating Solid liquidity 15% 5% 9% 13% 8% 12% 11% 13%2 >10%Target level 19 11 18 27 19 21 27 37 40 2010 2012 2014 2016 2018 2020 2021 72 2022 2023 43 70 Balance sheet strength improved over the cycle 13%
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71 KPIs according to Moody’s methodology Volkswagen Groups Credit Positioning Credit Rating Development Current Credit Ratings 20232011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Volkswagen AG Volkswagen Financial Services AG Volkswagen Bank GmbH Long-Term Short-Term Long-Term Short-Term Long-Term Short-Term 1.3x 1.8x 2.1x 2x 1.9x 2x 1.8x 2x 1.9x 2.8x 2.4x 1.4x 1.6x 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Debt / EBITDA RCF/ Debt 67% 31% 37% 31% 43% 36% 16% 31% 43% 21% 28% 13% 43% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 A3 (stable) P-2 A3 (stable) P-2 A1 (stable) P-1 A3 A2 A3 Strong credit metrices and ratings Testifying a diversified product landscape and resilient and integrated business model
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72 Volkswagen Groups Credit Positioning Credit Rating Development Current Credit Ratings 20232011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Volkswagen AG Volkswagen Financial Services AG Volkswagen Bank GmbH Long-Term Short-Term Long-Term Short-Term Long-Term Short-Term 1.2x 1.4x 0.9x 1.1x 4.1x 2.1x 1.3x 1.1x 0.9x 1.2x 0.8x 0.1x 0.2x 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Debt / EBITDA FFO / Debt 60% 53% 74% 60% 6% 30% 64% 79% 88% 63% 101% 1670% 352% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 A- A A- BBB+ BBB+ (stable) A-2 BBB+ (stable) A-2 BBB+ (stable) A-2 KPIs according to Moody’s methodology Strong credit metrices and ratings Testifying a diversified product landscape and resilient and integrated business model
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73 Sums may differ due to rounding effects. Well balanced debt maturity profile Volkswagen Group’s Funding Mix in % (as of March 31, 2024) 1.3 1.5 1.8 3.0 2.5 1.5 1.4 1.3 2.1 0.7 1.3 0.3 0.3 0.2 12.1 19.7 16.9 10.9 10.3 6.9 5.8 3.0 7.5 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2038 2039 2041 2043 20.8 21.2 18.7 13.9 12.8 8.4 7.2 4.2 1.5 [€ bn] 1.3 1.0 2.5 0.8 2.9 1.3 1.9 1.6 2.1 3.0 0.8 0.3 May- 24 Jun- 24 Jul-24 0.3 Aug- 24 Sep- 24 Oct- 24 Nov- 24 Dec- 24 Jan- 25 Feb- 25 Mar- 25 Apr- 25 2.4 5.0 1.7 0.7 1.2 1.1 2.7 Commercial Papers Bond/MTN Bonds Hybrid 12 months breakdown (as of March 31, 20234
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74 Sums may differ due to rounding effects. Well balanced debt maturity profile Volkswagen Group’s Funding Mix in % (as of December 31, 2023) 1.3 1.5 1.8 3.0 2.5 1.5 1.4 1.3 2.1 0.2 1.3 0.3 0.3 0.2 16.3 19.2 13.5 8.6 8.6 5.2 4.7 1.7 11.1 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2038 2039 2041 2043 28.6 20.7 15.3 11.6 11.1 6.7 6.1 3.0 1.5 [€ bn] 3.0 1.1 1.9 1.3 1.3 1.0 1.0 0.8 4.7 2.2 2.9 Jan- 24 Feb- 24 Mar- 24 Apr- 24 May- 24 Jun- 24 Jul-24 Aug- 24 Sep- 24 Oct- 24 Nov- 24 Dec- 24 7.7 3.3 1.3 2.8 1.5 4.6 1.5 0.4 2.7 Commercial Papers Bond/MTN Bonds Hybrid 12 months breakdown (as of December 31, 2023)
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75 Sums may differ due to rounding effects. Diversified mix of currencies and tenors Volkswagen Group’s Capital Market Borrowings Diversification of Unsecured Funding (as of December 31, 2023) 3.7% 3.1% 64.4% 21.5% 7.3% EUR USD GBP SEK CAD 88.8% 11.2% Fixed Floating Top 5 Currency Breakdown Commercial Paper and Bonds (excl. Hybrid) Fix vs. Float Bonds (excl. Hybrid)
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76 1. First call dates of hybrids are shown in the table, , as of 12/23 Hybrid Bonds as integral strategic part of capital structure Hybrid Capital within the Volkswagen Group1 Provides 100% IFRS equity without diluting existing shareholders Long-term commitment towards hybrid capital supporting Volkswagen Group’s credit metrics such as Net Industrial Liquidity Well diversified maturity profile 3 2 2 1 2 1 2 11.0 2.0 3.0 € bn 1 2 1 1 2024 2025 2026 2027 2028 2029 2030 2031 2032
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77 1. Include all direct and indirect costs that are directly attributable to the development process (as defined in the notes to the Consolidated Financial Statements of the Annual Report) 2. Such as buildings, site improvements, technical equipment and machinery or other equipment and operating equipment, including special tools (as defined in the notes to the Consolidated Financial Statements of the Annual Report) Clean Transportation (all-electric) ICMA Green Bond Principles Eligible Green Project Category: Clean Transportation Substantial contribution to Environmental Objective:Climate Change Mitigation United Nation Sustainable Development Goals: 9.1, 9.5, 11.6, 13.1 Economic activity EU taxonomy Allocation in the Volkswagen Group Additional criteria and information on the Eligible Green Portfolio 3.3 Manufacture of low-carbon technologies for transport Vehicle-related business IFRS accounted additions to capitalized development costs 1) for the BEVs (Battery Electric Vehicles) and, the IFRS accounted additions to property, plant and equipment2) for BEVs EU Taxonomy aligned EU Environmental Objectives Technical Screening Criteria Do No Significant Harm (DNSH) Minimum Social Safeguard requirements Exclusion: plug-in hybrid electric vehicles (PHEVs) vehicles with combustion engines Third-Party Review Eligible Assets Volkswagen’s NEW Green Finance Framework Eligible Assets: EU Taxonomy aligned incl. DNSH & Minimum Social Safeguard requirements
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78 ID. Buzz Pro: Power consumption in kWh/100 km: combined 21.7 – 20.6; CO2-emissions in g/km: 0 (combined) Porsche Taycan GTS Sport Turismo: Power consumption in kWh/100 km: combined 24.1 – 21.0; CO2-emissions in g/km: 0 (combined) ID.5 Pro Performance: Power consumption in kWh/100 km: combined 18.6 - 16.3; CO2-emissions in g/km: 0 (combined) Škoda Enyaq Coupé RS: Power consumption in kWh/100 km: combined 16.8; CO2-emissions in g/km: 0 (combined) Only consumption and emission values according to WLTP and not according to NEDC are available for the vehicles EU Taxonomy Criteria Taxonomy-Aligned Capital Expenditure Economic activity is environ- mentally sustainable Substantial contribution to at least one of the environmental objectives Minimum safeguards comply with OECD Guidelines, UN Guiding Principles on Business and Human Rights, ILO fundamental conventions Do no significant harm (DNSH) to any of the other environmental objectives Additions to capitalized development costs and property, plant and equipment for BEVs only (passenger cars and light commercial vehicles in 2021, incl. trucks in 2022) in 2022 € 9.8bn in 2021 € 7.2bn New EU taxonomy aligned portfolio
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79 1. Includes all outstanding bonds from the Volkswagen Automotive Division (hybrids shown on first call dates) and Financial Services Division, as of 12/23 Further Information on Volkswagen’s Green Bonds Volkswagen Group - Green Finance Framework 2022 volkswagenag.com Volkswagen Group - Green Finance Framework 2022 - Second-Party Opinion.pdf volkswagenag.com Volkswagen Group – ESG Figures (including PAI Indicators) volkswagenag.com Volkswagen Group is a well-established Green bond issuer Green Bond Redemption Profile1 0 10 20 30 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Green Bonds Conventional Bonds
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80 8 Volkswagen Share
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Volkswagen Share Information 81 Shareholder Structure as of December 31, 2022 Volkswagen Share Data and Indices ESG Rating Coverage and Memberships ESG: MSCI World SRI Sustainalytics Institutional Shareholder Services (ISS) Standard & Poors (S&P) Moodys ESG Solutions Memberships: United Nations Global Impact 31.9% 22.2%10.5 11.8% 21.0% 2.6% Porsche Automobil Holding Foreign institutional investors Qatar Holding LLC State of Lower Saxony Private Shareholders / Others German institutional Investors Ordinary Shares Preferred Shares DE0007664005 DE0007664039 766400 766403 VOW VOW3 VOWG.DE VOWG_P.DE CDAX, Prime All Share, MSCI Euro, S&P Global 100 Index DAX, CDAX, EURO STOXX, EURO STOXX 50, EURO - SXAP, Prime All Share, MSCI Euro Berlin, Dusseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Xetra ISIN WKN Deutsche Börse / BBG Reuters Primary market indices Exchanges
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82 1. Each Board Member is responsible for one or more functions within the Volkswagen Group. The work of the Management Board of Volkswagen AG is supported by the boards of the brands and regions as well as by the other group business units and holdings I2. Starting on September 1, 2023 * Employee representative Dr. Hessa Sultan Al Jaber Mansoor Bin Ebrahim Al-Mahmoud Harald Buck * Daniela Cavallo * Mathías Carnero Sojo * Julia Willie Hamburg Marianne Heiß Jörg Hofmann * Dr. Arno Homburg * Dr. Günther Horvath Peter Mosch * Daniela Nowak * Dr. jur. Hans Michel Piëch Dr. jur. Ferdinand Oliver Porsche Dr. rer. comm. Wolfgang Porsche Gerardo Scarpino * Conny Schönhardt * Stephan Weil (as of December 31, 2022) 41.1% Preferred shares 206,205,445 58.9% Ordinary shares 295,089,818 53.3% Porsche SE, Stuttgart20.0% Qatar Holding 17.0% State of Lower Saxony, Hanover Others 9.7% Number of Outstanding Shares Current Voting Rights Distribution Hans Dieter PötschChairman Members Shareholder Structure of Volkswagen AG Supervisory Board of Volkswagen AG Management Board of Volkswagen AG1 Technology Thomas Schmall -von Westerhold IT Hauke Stars Chairman of the Management Board of Volkswagen AG and Dr. Ing. h.c. F. Porsche AG Dr. Oliver Blume CEO of the Volkswagen Passenger Cars Brand, Member of the Volkswagen AG Board of Management and in charge of the Brand Group Core Thomas Schäfer Brand Group ‘Progressive’ Dr. Gernot Döllner2 Integrity & Legal Affairs Dr. Manfred Döss Finance & Operations Dr. Arno Antlitz Member of the board of Volkswagen AG for China Ralf Brandstätter Human Resources and Brand Group ‘Truck & Bus‘ Gunnar Kilian Shareholder structure
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83 Andreas Buchta Senior Investor Relations Manager | Equity E-Mail: andreas.buchta@volkswagen.de Telephone: +49 5361 9 40765 Christopher Macke Senior Investor Relations Manager | Equity E-Mail: christopher.macke@volkswagen.de Telephone: +49 152 54954544 Henrik Steindam Investor Relations Officer | Equity E-Mail: henrik.steindam@volkswagen.de Telephone: +49 152 09105300 Gloria Gröger Investor Relations Officer | Equity E-Mail: gloria.groeger@volkswagen.de Telephone: +49 151 65573533 Helen Beckermann (temporarily absent) Senior Investor Relations Manager | Equity E-Mail: helen.beckermann@volkswagen.de Telephone: +49 5361 9 49015 Note: The official website of Volkswagen Group Investor Relations. Company topics, brand channels, innovation and information. Monika Dühring (temporarily absent) Senior Investor Relations Manager | Equity E-Mail: monika.duehring@volkswagen.de Telephone: +49 5361 9 31106 Rolf Woller Head of Group Treasury & Investor Relations E-Mail: rolf.woller@volkswagen.de Telephone: +49 5361 9 24184 Lars Korinth Head of Group Investor Relations E-Mail: lars.korinth@volkswagen.de Telephone: +49 152 29454956 Group Investor Relations team Lai Wang (Beijing Office) Senior Investor Relations Manager / Equity Key Contact AP & China E-Mail: lai.wang@volkswagen.com.cn Telephone: +86 10 6531 5356 Christian Rottler Senior Investor Relations Officer | Equity E-Mail: Christian.rottler@volkswagen.de Telephone: +49 173 7908126
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84 Ulrich Hauswaldt Senior Investor Relations Officer | Credit and ESG Rating Relations E-Mail: ulrich.hauswaldt@volkswagen.de Telephone: +49 5361 9 42224 Thomas Küter Senior Investor Relations Manager | Credit and ESG Rating Relations E-Mail: thomas.kueter@volkswagen.de Telephone: +49 5361 9 85043 Thomas Fries Credit and ESG Rating Relations E-Mail: thomas.fries1@volkswagen.de Telephone: +49 151 65573719 Note: The official website of Volkswagen Group Investor Relations. Company topics, brand channels, innovation and information. Björn Bätge Head of Global Markets E-Mail: bjoern.baetge@volkswagen.de Telephone: +49 5361 9 25888 Rolf Woller Head of Group Treasury & Investor Relations E-Mail: rolf.woller@volkswagen.de Telephone: +49 5361 9 24184 Credit and ESG Rating Relations - CERR Team
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85 9 Backup Financial Tables
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VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) FY 2023 FY 2022 FY 2023 FY 2022 FY 2023 FY 20221 FY 2023 FY 20221 Brand Group Core 4,826 4,069 137,770 113,762 7,273 4,045 5.3 3.6 Volkswagen Passenger Cars 3,016 2,594 86,382 73,773 3,542 2,647 4.1 3.6 ŠKODA 1,056 863 26,536 21,026 1,773 628 6.7 3.0 SEAT 602 468 14,333 10,941 625 33 4.4 0.3 Volkswagen Commercial Vehicles 423 340 15,325 11,455 873 529 5.7 4.6 Tech. Components - - 21,282 17,966 582 130 2.7 0.7 Consolidation -270 -195 -26,088 -21,399 -121 78 - - Brand Group Progressive (Audi) 1,282 1,070 69,865 61,753 6,280 7,622 9.0 12.3 Brand Group Sport Luxury (Porsche Automotive)2 334 314 37,349 34,599 6,938 6,425 18.6 18.6 CARIAD - - 1,078 796 -2,392 -2,068 - - Battery - - 31 0 -417 -121 - - TRATON Commercial Vehicles 339 306 45,731 39,516 3,715 1,583 8.1 4.0 MAN Energy Solutions - - 4,044 3,565 369 284 9.1 8.0 At equity accounted companies in China3 3,065 3,122 - - - - - - Volkswagen Financial Services - - 50,765 43,953 3,253 5,584 6.4 12.7 Other4 -484 -400 -24,350 -18,895 -2,445 -845 - - Volkswagen Group before special items - - - - 22,576 22,509 - - Special Items - - - - - -399 - - Volkswagen Group 9,362 8,481 322,284 279,050 22,576 22,109 7.0 7.9 thereof: - - - - - - - - Automotive Division5 9,362 8,481 268,156 232,392 18,784 16,471 7.0 7.1 Of which: Passenger Cars Business Area 9,023 8,175 218,380 189,312 14,704 14,603 6.7 7.7 Commercial Vehicles Business Area 339 306 45,731 39,516 3,714 1,588 8.1 4.0 Power Engineering Business Area - - 4,044 3,565 366 281 9.0 7.9 Financial Services Division - - 54,128 46,657 3,792 5,638 7.0 12.1 86 Volkswagen Group FY 2023 – Analysis by Brand and Business Field 1. Previous year adjusted (IFRS 17) I 2. Porsche (including Financial Services): sales revenue € 40,530 (37,637) million, operating result € 7,284 (6,772) million I 3. The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to € 2,621 (3,280) million I 4. In the operating result, mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands I 5. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions.
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1. Previous year adjusted (IFRS 17) I 2. Porsche (including Financial Services): sales revenue € 30,132 (26,750) million, operating result € 5,501 (5,049) million I 3. The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to € 1.880 (2.558) million I 4. In the operating result, mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands I 5. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 1 9M 2023 9M 2022 1 Brand Group Core 3,575 2,957 101,060 81,356 4,985 3,720 4.9 4.6 Volkswagen Passenger Cars 2,238 1,882 63,390 52,026 2,126 2,462 3.4 4.7 ŠKODA 778 646 19,659 15,181 1,260 856 6.4 5.6 SEAT 454 333 10,837 7,820 501 -10 4.6 -0.1 Volkswagen Commercial Vehicles 313 237 11,109 7,956 672 356 6.0 4.5 Tech. Components – – 16,526 12,655 449 -7 2.7 -0.1 Consolidation -208 -141 -20,461 -14,281 -23 64 Brand Group Progressive (Audi) 945 766 50,390 44,561 4,595 6,282 9.1 14.1 Brand Group Sport Luxury (Porsche Automotive) 2 250 221 27,785 24,465 5,232 4,748 18.8 19.4 CARIAD – – 544 422 -1,728 -1,427 – – Battery – – 2 0 -234 -32 – – TRATON Commercial Vehicles 250 218 33,349 27,964 2,662 954 8.0 3.4 MAN Energy Solutions – – 2,876 2,517 292 210 10.2 8.3 At equity accounted companies in China 3 2,150 2,339 – – – – – – Volkswagen Financial Services – - 37,595 32,728 2,535 4,381 6.7 13.4 Other4 -408 -258 -18,499 -11,128 -2,098 -1,397 – – Volkswagen Group before special items – – – – 16,241 17,439 – – Special Items – – - – – -360 – – Volkswagen Group 6,762 6,243 235,102 202,885 16,241 17,079 6.9 8.4 thereof: Automotive Division 5 6,762 6,243 195,060 168,191 13,226 12,908 6.8 7.7 Of which: Passenger Cars Business Area 6,512 6,025 158,835 137,711 10,276 11,746 6.5 8.5 Commercial Vehicles Business Area 250 218 33,349 27,964 2,661 956 8.0 3.4 Power Engineering Business Area – – 2,876 2,517 289 207 10.1 8.2 Financial Services Division – – 40,042 34,693 3,015 4,171 7.5 12.0 87 Volkswagen Group 9M – Analysis by Brand and Business Field
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1. Previous year adjusted (IFRS 17) I 2. Porsche (including Financial Services): sales revenue € 9,701 (8,828) million, operating result € 1,649 (1,569) million I 3. The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to € 727 (1,156) million I 4. In the operating result, mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands I 5. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 1 Q3 2023 Q3 2022 1 Brand Group Core 1,125 1,001 32,296 28,346 1,213 1,074 3.8 3.8 Volkswagen Passenger Cars 715 665 20,432 18,703 486 602 2.4 3.2 ŠKODA 232 199 5,911 4,958 349 180 5.9 3.6 SEAT 137 97 3,425 2,442 130 87 3.8 3.5 Volkswagen Commercial Vehicles 101 84 3,691 2,910 224 170 6.1 5.8 Tech. Components – – 4,434 4,507 11 21 0.2 0.5 Consolidation -60 -43 -5,597 -5,176 13 14 – – Brand Group Progressive (Audi) 290 253 16,221 14,691 1,178 1,317 7.3 9.0 Brand Group Sport Luxury (Porsche Automotive) 2 79 72 8,893 8,040 1,579 1,486 17.8 18.5 CARIAD – – 216 172 -640 -449 – – Battery – – 2 0 -53 -18 – – TRATON Commercial Vehicles 82 80 11,017 10,351 864 337 7.8 3.3 MAN Energy Solutions – – 1,001 885 84 79 8.4 8.9 At equity accounted companies in China 3 797 909 – – – – – – Volkswagen Financial Services – – 13,483 10,862 775 1,406 5.7 12.9 Other4 – – -4,284 -2,674 -105 -972 – – Volkswagen Group before special items – – – – 4,894 4,260 – – Special Items – – – – – 0 – – Volkswagen Group 2,314 2,236 78,845 70,673 4,894 4,260 6.2 6.0 thereof: Automotive Division 5 2,314 2,236 64,491 59,126 4,106 3,182 6.4 5.4 Of which: Passenger Cars Business Area 2,233 2,156 52,473 47,890 3,158 2,767 6.0 5.8 Commercial Vehicles Business Area 82 80 11,017 10,351 865 338 7.8 3.3 Power Engineering Business Area – – 1,001 885 83 78 8.3 8.8 Financial Services Division – – 14,353 11,548 788 1,077 5.5 9.3 88 Volkswagen Group Q3 – Analysis by Brand and Business Field
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1. Previous year adjusted (IFRS 17) I 2. Porsche (including Financial Services): sales revenue € 20,626 (17,922) million, operating result € 3,852 (3,480) million I 3. The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to € 1,152 (1,402) million I 4. In the operating result, mainly intragroup items recognized in profit or loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands I 5. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) H1 2023 H1 2022 H1 2023 H1 2022 H1 2023 H1 2022 1 H1 2023 H1 2022 1 Brand Group Core 2,450 1,956 68,764 53,010 3,773 2,646 5.5 5.0 Volkswagen Passenger Cars 1,523 1,218 42,959 33,322 1,641 1,860 3.8 5.6 ŠKODA 545 447 13,748 10,223 911 676 6.6 6.6 SEAT 317 236 7,411 5,377 371 -97 5.0 -1.8 Volkswagen Commercial Vehicles 212 153 7,418 5,046 448 187 6.0 3.7 Tech. Components - – 12,092 8,147 438 -28 3.6 -0.3 Consolidation -148 -97 -14,863 -9,105 -37 50 - - Brand Group Progressive (Audi) 655 513 34,169 29,869 3,417 4,965 10.0 16.6 Brand Group Sport Luxury (Porsche Automotive ) 2 171 149 18,892 16,425 3,653 3,261 19.3 19.9 CARIAD - – 329 249 -1,088 -978 - – Battery - – - – -181 -14 - – TRATON Commercial Vehicles 168 138 22,331 17,613 1,798 617 8.1 3.5 MAN Energy Solutions - – 1,875 1,632 208 131 11.1 8.0 At equity accounted companies in China 3 1,352 1431 - – - – - – Volkswagen Financial Services - – 24,112 21,866 1,760 2,975 7.3 13.6 Other4 -349 -180 -14,215 -8,454 -1,993 -425 - – Volkswagen Group before special items - - - – 11,347 13,180 - - Special Items - – - – - -360 - – Volkswagen Group 4,448 4,006 156,257 132,211 11,347 12,820 7.3 9.7 thereof: - – - – - – - – Automotive Division 5 4,448 4,006 130,569 109,066 9,120 9,726 7.0 8.9 Of which: Passenger Cars Business Area 4,279 3,868 106,362 89,820 7,118 8,979 6.7 10.0 Commercial Vehicles Business Area 168 138 22,331 17,613 1,796 618 8.0 3.5 Power Engineering Business Area - – 1,875 1,632 206 129 11.0 7.9 Financial Services Division - – 25,689 23,146 2,226 3,094 8.7 13.4 89 Volkswagen Group H1 – Analysis by Brand and Business Field
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1. Previous year adjusted (IFRS 17) I 2. Porsche (including Financial Services): sales revenue € 10,529 (9,879) million, operating result € 2,012 (2,013) million I 3. The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to € 527 (578) million I 4. In the operating result, mainly intragroup items recognized in profitor loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands I 5. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 1 Q2 2023 Q2 2022 1 Brand Group Core 1,257 1,038 35,601 28,649 2,031 1,769 5.7 6.2 Volkswagen Passenger Cars 792 681 22,495 18,444 1,033 1,347 4.6 7.3 ŠKODA 270 216 6,954 5,122 369 339 5.3 6.6 SEAT 163 129 3,849 2,973 227 -102 5.9 -3.4 Volkswagen Commercial Vehicles 108 80 3,819 2,752 277 140 7.3 5.1 Tech. Components - – 6,064 4,533 201 4 3.3 0.1 Consolidation -76 -69 -7,579 -5,174 -76 41 - – Brand Group Progressive (Audi) 332 269 17,286 15,588 1,601 1,430 9.3 9.2 Brand Group Sport Luxury (Porsche Automotive ) 2 86 83 9,559 9,108 1,926 1,904 20.1 20.9 CARIAD - – 160 139 -659 -562 - – Battery - - - - -109 - - - TRATON Commercial Vehicles 84 70 11,393 9,261 923 286 8.1 3.1 MAN Energy Solutions - – 974 871 107 76 11.0 8.7 At equity accounted companies in China 3 744 665 - – - – - – Volkswagen Financial Services - – 12,132 10,990 774 1,474 6.4 13.4 Other4 -178 -113 -7,047 -5,106 -996 -1,648 - – Volkswagen Group before special items - – - – 5,600 4,722 - – Special Items - – - – - -230 - - Volkswagen Group 2,324 2,011 80,059 69,500 5,600 4,491 7.0 6.5 thereof: - – - – - – - – Automotive Division 5 2,324 2,011 67,106 57,856 4,537 2,942 6.8 5.1 Of which: Passenger Cars Business Area 2,240 1,941 54,739 47,724 3,507 2,579 6.4 5.4 Commercial Vehicles Business Area 84 70 11,393 9,261 924 288 8.1 3.1 Power Engineering Business Area - – 974 871 106 75 10.9 8.6 Financial Services Division - – 12,953 11,644 1,062 1,550 8.2 13.3 90 Volkswagen Group Q2 – Analysis by Brand and Business Field
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1. Previous year adjusted (IFRS 17) I 2. Porsche (including Financial Services): sales revenue € 10,097 (8,043) million, operating result € 1,840 (1,467) million I 3. The sales revenue and operating result of the equity-accounted companies in China are not included in the consolidated figures; the share of the operating result generated by these companies amounted to € 625 (824) million I 4. In the operating result, mainly intragroup items recognized in profitor loss, in particular from the elimination of intercompany profits; the figure includes depreciation and amortization of identifiable assets as part of purchase price allocation, as well as companies not allocated to the brands I 5. Including allocation of consolidation adjustments between the Automotive and Financial Services divisions. VEHICLE SALES (`000) SALES REVENUE (€ m) OPERATING RESULT (€ m) OPERATING MARGIN (%) Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 1 Q1 2023 Q1 2022 1 Brand Group Core 1,193 918 33,163 24,361 1,742 877 5.3 3.6 Volkswagen Passenger Cars 731 537 20,464 14,879 608 513 3.0 3.4 ŠKODA 275 231 6,794 5,101 542 337 8.0 6.6 SEAT 155 107 3,562 2,404 144 5 4.0 0.2 Volkswagen Commercial Vehicles 104 73 3,599 2,294 171 46 4.8 2.0 Tech. Components - – 6,028 3,614 237 -33 3.9 -0.9 Consolidation -72 -29 -7,284 -3,931 39 9 - – Brand Group Progressive (Audi) 323 244 16,883 14,282 1,816 3,535 10.8 24.8 Brand Group Sport Luxury (Porsche Automotive ) 2 85 66 9,333 7,317 1,727 1,359 18.5 18.6 CARIAD - – 168 110 -429 -416 - – Battery - – - – -72 -6 - – TRATON Commercial Vehicles 85 68 10,938 8,353 875 331 8.0 4.0 MAN Energy Solutions - – 901 761 101 55 11.2 7.2 At equity accounted companies in China 3 609 765 - – - – - – Volkswagen Financial Services - – 11,980 10,876 985 1,501 8.2 13.8 Other4 -171 -67 -7,168 -3,348 -997 1,222 - – Volkswagen Group before special items - – - – 5,747 8,458 - – Special Items - – - – - -130 - – Volkswagen Group 2,124 1,995 76,198 62,711 5,747 8,328 7.5 13.3 thereof: - – - – - – - – Automotive Division 5 2,124 1,995 63,463 51,210 4,583 6,784 7.2 13.2 Of which: Passenger Cars Business Area 2,039 1,927 51,623 42,096 3,611 6,400 7.0 15.2 Commercial Vehicles Business Area 85 68 10,938 8,353 872 330 8.0 4.0 Power Engineering Business Area - – 901 761 100 54 11.1 7.1 Financial Services Division - – 12,736 11,502 1,164 1,544 9.1 13.4 91 Volkswagen Group Q1 – Analysis by Brand and Business Field